Suncor Energy’s (NYSE: SU) St. Clair Ethanol Plant is expanding to double its production, thanks to a $25 million investment by the Canadian government.
The Suncor St. Clair Ethanol Plant currently produces 200 million litres of ethanol per year and will be expanded to double its capacity to 400 million litres per year. The facility, which is expected to be completed in September 2009, has also received equity investment from farmers totaling $12.5 million. This project will create new opportunities for farmers who are growing the feedstock to produce the ethanol, as well new opportunities for those who are involved as financial and business partners in the plant’s expansion.
This is the fourth biofuel plant funded under the ecoABC initiative. The other plants announced to date are IGPC Ethanol Inc., in Aylmer, Ontario; North West Terminal Ltd., in Unity Saskatchewan; and Western Biodiesel Inc., in Aldersyde, Alberta.
The Government of Canada is investing a total of $2.2 billion over nine years toward the goal of reaching an average of 5% renewable content based on the gasoline pool by 2010 and 2% renewable content in diesel fuel and heating oil by 2012 and advancing next generation biofuel technologies.
In addition to ethanol, the Suncor plant will produce dried distillers grains with solubles (DDGS), sources of high protein and high-energy feed for dairy and beef cows, hogs and poultry, as well as carbon dioxide, which is used to freeze foods and produce carbonated beverages and fire extinguishers.
"We are very grateful for the federal government’s support for our project," said Suncor Energy Products Inc. General Manager, Gord Pinard. "Programs such as ecoABC are instrumental in helping expand Canada’s biofuels production capacity and integrating renewable fuels into our transportation energy supply chains."
The ecoABC initiative was launched by the Government of Canada in April 2007. The initiative is part of the comprehensive Government of Canada renewable fuels strategy that focuses on increasing the demand for renewable fuels through regulation, expanding production capacity in Canada by offering an operating incentive, assisting farmers to participate in this sector of the economy and accelerating the commercialization of new technologies.
About Suncor
Suncor Energy Products Inc. (SEPI), located in Toronto, Ontario, is a subsidiary of Suncor Energy Inc, an integrated energy company headquartered in Calgary, Alberta. The company operates the 200 million litre per year Suncor St. Clair Ethanol Facility, the largest ethanol production facility in Canada. Suncor has been blending ethanol into its Sunoco gasolines since 1996.
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